News

Brexit – update to no-deal scenario

With the impending departure of the United Kingdom (UK) from the European Union (EU) on 29th March 2019, it is essential we are as prepared as possible.

In a no-deal scenario, the UK will fall back onto World Trade Organisation (WTO) tariffs.

The UK has taken the current EU WTO tariff schedule and, essentially, copied and pasted them as the fallback position for the UK. Although presented to the WTO, they will not be live until the UK exits the EU. Even if any WTO member objects, the tariffs will still be valid while the WTO members ratify the schedule .

With regards to imports from countries outside the EU, nothing should change. Those countries will still pay the tariffs they paid when we were part of the EU, unless the UK Government enters negotiations with supplying countries and creates separate Free Trade Agreements (FTAs).

The major change will be with our dealings with the remaining EU countries.

On 29th March 2019, the EU will become a third country and any imports from the EU will be subject to the third country duty that the UK government have set (current third country rates are available from the UK Gov link above) .

In the event of a no-deal Brexit tariffs will be based on the WTO’s “Most Favoured Nation” principle.